Federal Finance Minister Jim Flaherty has announced changes to mortgage insurance rules that'll come into force on April 19, 2010. CAAMP was engaged in the discussions around these changes which are as follows:
- All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term.
- The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one’s home.
- Non-owner occupied properties will require a minimum down payment of 20%.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences. If you have any questions regarding the changes do give us a call.
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Amit
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